Martin Schlegel, the head of Switzerland’s central bank, has rejected Bitcoin as a reserve currency. He believes Bitcoin is illiquid and highly volatile. In an interview, Schlegel stated that cryptocurrencies do not meet the essential requirements for a healthy currency. He became the president of the Swiss National Bank (SNB) in October 2024.
Schlegel pointed out that Bitcoin and other crypto are too unstable to be part of a nation’s currency reserves. Currency reserves need to be liquid, allowing for quick spending, which crypto currently cannot provide.
The SNB has been active in currency markets to prevent the Swiss franc from appreciating too much. Schlegel views cryptocurrencies as a “niche phenomenon,” mainly used for speculation.
He also raised security concerns about digital currencies. He noted that cryptocurrencies are essentially just software, making them vulnerable to attacks. Despite these challenges, a new initiative was introduced in December 2024 in Switzerland.
This proposal aims to force the SNB to include Bitcoin in its monetary reserves. If passed, it would recognize Bitcoin as the most established cryptocurrency in the nation’s reserves.
The organizers of the initiative have until the end of June 2026 to gather 100,000 signatures for a referendum. Meanwhile, Bitcoin’s price has been highly volatile.
Recently, it fell below $80,000 for the first time since November 2024. This drop represents a decline of over 25% from its peak of nearly $110,000, which occurred just before President Donald Trump’s inauguration on January 20.
